Cryptostocks

[Ares]

So I came across a site that allows you to INVEST in a company developing ASIC type hardware, or even ASIC mining services with Bitcoins, LiteCoins, or DevCoins. Or other Crypto currency type of products or services.

https://cryptostocks.com

I've invested in a few companies on there now. The dividends don't look bad. But like anything buy and sell at your own risk.

[Son-of-Liberty]

I don't know anything about the companies you might have invested in but I am very skeptical about the future of mining because the hardware becomes obsolete so fast that it is almost impossible to earn a reasonable ROI by mining anymore.

The companies developing ASIC technology may do well as long as people keep buying their hardware.

[madfranks]

I tend to think it's far too early in the crypto currency game to start investing funds with third parties. I believe there needs to be some additional safeguards developed for this sort of thing. Right now it's far too easy for someone to create a fake "investment" site, make it look as real and legitimate as possible, and simply disappear with the money.

[EE_]

I tend to think it's far too early in the crypto currency game to start investing funds with third parties. I believe there needs to be some additional safeguards developed for this sort of thing. Right now it's far too easy for someone to create a fake "investment" site, make it look as real and legitimate as possible, and simply disappear with the money.

I get the feeling that many of the guys running crypto currency sites and crypto investment companies are 17 yr. old pimple faced computer geeks operating out of their mom's basement. Copying someone else's web-sites.

http://global3.memecdn.com/not-just-a-geek_o_380202.jpg

[Ares]

I don't know anything about the companies you might have invested in but I am very skeptical about the future of mining because the hardware becomes obsolete so fast that it is almost impossible to earn a reasonable ROI by mining anymore.

The companies developing ASIC technology may do well as long as people keep buying their hardware.

I've only invested in 2 companies, and no more than I'm willing to lose if they go south.

Company 1 is developing an ASIC Scrypt miner. They've posted video and images of a working prototype doing 50 mega hash. The production unit will do 25Mega hash and only draw 400 watts of power. Each unit will sell for 800 British pounds (About $944 FRN's at last check). They aren't going to be doing what Butterfly Labs did. They are putting up the money now for development, research and development, and will start taking orders as soon as they have a production model. Already received my first dividend for a successful sponsorship negotiation they were able to complete.

Company 2 is a German based ASIC Bitcoin mining company. I looked through their dividend history and so far they've been doing well.

I also have the same concerns that madfranks lays out. These could very well be a scam, and they could very well take the money and run. But then I thought, there really isn't much difference if I buy into any stocks in an algo manipulated "mainstream" market anymore either.

So every investment is a risk. I just choose to invest in (and risk) in crypto currencies as I believe they are the way to the future of human freedom. I'm putting my money where my mouth is.

[Son-of-Liberty]

I get the feeling that many of the guys running crypto currency sites and crypto investment companies are 17 yr. old pimple faced computer geeks operating out of their mom's basement. Copying someone else's web-sites.

http://global3.memecdn.com/not-just-a-geek_o_380202.jpg

You are probably right and many of these 17 year olds will be millionaires in 12 months starting with nothing in their mothers basement and you will still be bashing BTC and other crypto's after refusing to get educated on the subject.

[Son-of-Liberty]

I look at it this way.

Crypto's are like gambling. Except that you actually have odds in your favor because of the retarded inflow of capital into them.

You still have to do a little research and educate yourself a bit though, it isn't just throwing darts a board.

After some research:

You have a 1/10 chance to make 100x your money and a 9/10 chance of losing it all what do you do?

Of course you have to take that bet. You might not bet the farm but you have to bet something. To not do so is actually the stupid decision because the odds of turning a massive profit are in your favor, especially if you make many small bets.

[Son-of-Liberty]

I tend to think it's far too early in the crypto currency game to start investing funds with third parties. I believe there needs to be some additional safeguards developed for this sort of thing. Right now it's far too easy for someone to create a fake "investment" site, make it look as real and legitimate as possible, and simply disappear with the money.

Yeah you have to be cautious. I think it is worth the risk though. Just do your due diligence and don't put too much in one basket.

[EE_]

You are probably right and many of these 17 year olds will be millionaires in 12 months starting with nothing in their mothers basement and you will still be bashing BTC and other crypto's after refusing to get educated on the subject.

Please tell me who makes the market on bitcoins and what drives the price?
If I am to buy bitcoins, I have no use for them other then to profit and then cash out.

Some of you guys are already winners, but it's still early yet to add up the score.
I've had friends in my past that ran pyramid schemes and this just looks like one to me.

Everytime I get interested and start researching bitcoin, the word scam comes up.

http://nerdr.com/bitcoin-exchange-scam-bitcoins-are-worthless/
After considerable thought, I’ve decided to put the Bitcoin Exchange Scammer comment back up as I believe it’s in the public interest, especially so given recent events on Bitcoin Exchanges.

For those unaware, every now and then, I receive a comment through the wonderfully inefficient Nerdr.com spam filter from someone who couldn’t quite find my email address. That’s fine and most times it’s a small fire that’s quickly put out, or a start-up proposal to consider. All good fun.

Yesterday was a little different. I came across a message that sent a shiver down my spine. As much as I have discussed the pros and cons of Bitcoin, I never once realized this could be happening. It was a comment intended for the Bitcoin Shutdown article and originated from what appeared to be an actual Bitcoin Trading Exchange owner.

Now I’d take this with a grain of salt (heck a sack of it judging by some of the comments left here last week), but it seems like the real deal from what I could dig up. I’ve removed the Bitcoin Exchange name for obvious reasons and cleaned up the grammar and spelling as best I could.

THE BITCOIN EXCHANGE SCAM:

“Hi Nerdr, I could not find an email address to contact you and have some information for you.

Let me first say who this message is from. I own and run a Bitcoin trading exchange. Here many users buy Bitcoins and sell Bitcoins for dollars. As you know it has been a great time for Bitcoin trading with a large rise in value over a very short period of time.

First I started like the others. I wanted to trade the bitcoins for the dollars on the Bitcoin forum like others. Then I started my own Bitcoin website to do this. Some people from the Bitcoin forum used it and were happy. Some told their friends and so on and so on. It grew like a mushroom. I want to say again, first it was all good and clean, no mess, very honest.

Then I had my big idea. I wanted to make more money. The number on the exchange. A number. I could change it in the programming. Not too much, because their are other exchanges to balance, but a little would be okay to do. So I did it. I increased the Bitcoin value a little. Say from $1 to $1.05. No one noticed and many were happy to see it go up. I was making people happy and the forum enjoyed the fun times with many dreaming big money! haha.

Now I change the Bitcoin price by hand nearly everyday now. I increase the number and more people give me money. Sometimes I let the files do this. It is a miracle like I have a bank haha. I give them numbers and they give me money. I thank god everyday.

They are greedy. I don’t care if I cheated them. I wonder is it bad? I have a nice life now and will marry soon. We will buy our first house soon with my Bitcoin money the greedy gave me.

I am blessed to be alive.”

MY OPINION:
I’ve said it before and I’ll say it again; their are 3 main users of Bitcoin:

■The Money cleaners/tax evaders.
■Those involved in non-legal activities.
■The Greedy.
It seems our friend is going after the greedy.

We all know Bitcoin is a sham, it’s a pyramid scheme, but I never thought to consider the exchanges to be on such shaky ground. I guess something about them encouraged trust, we think of them with the same respect we hold for the DAX or FTSE 100, but when one considers why we revere these Bitcoin Exchanges the argument falls short and the mental house of cards we’ve built comes crashing down.

Bitcoin Exchange
Bitcoin Exchanges have no audit process, no way of keeping them honest, no trail and no verification procedures. It’s just a number like he said. It’s all trust, based on a house of cards and this is one of the issues I’ve been harping on about from the beginning. Why do you trust the exchanges? What gives Bitcoin it’s value?

An anonymous currency requires trust between users. Especially when used online. If I pay you N Bitcoins, I have to trust you will send the goods in exchange. Think about who you will be sending those Bitcoins to. Without trust, there is nothing. The key to remember is the Bitcoin system relies on trust, yet you are dealing with the most untrustable and criminal of people, exactly those who seek an anonymous currency like Bitcoin. For those who are still unaware, there is no honor among thieves except in Hollywood.

Bitcoin Scam
It is possible that last weeks Bitcoin Black Friday event (10th June 2011) was a market manipulation. If you owned an exchange and were running low on Bitcoins, what would you do?

I’ll tell you what I’d do. I’d drop the prices on the exchange, buy up as many Bitcoins as I could get from Idiots looking to sell, then jack the Bitcoin price right back up and make a killing. And I’d do it everytime.

And you would too.

There are no controls, no structure and no systems in place to keep things honest on the Bitcoin exchanges. No Securities and Exchange Commission. No Financial Services Authority. Bitcoin is unregulated and not the right place for a regular Joe to be placing money. Especially when they gain little value from Bitcoins anonymity, unlike those intending nefarious acts. Add in Bitcoin pricing volatility and you have a currency that is unusable for real world trade.

Having said that, without the Bitcoin Exchanges, how else will Bitcoin users value their “currency”? They can’t. Bitcoin valuation, as with any currency, requires a central base to assign that value.

A currency requires agreement on value, even if it is just perceived with little or no tangible mass behind it.

Even if it is just a database our friend can change at will.

What do you think? Would you put your life savings into Bitcoin?

[Son-of-Liberty]

Please tell me who makes the market on bitcoins and what drives the price?

I would say the market is made by the larger exchanges. BTC-e, Mt.Gox, Bitstamp, BTCchina. Lately BTCchina seems to be in control the other exchanges seem to follow. I have warned several times that I would not do business with Mt.Gox their price tends to be higher then it should because they make it difficult and it takes a very long time to withdraw USD from them.

I don't do business with these exchanges I use localbitcoin. It is anonymous and private the way it should be.

What is driving the price are many factors. Mainly the characteristics of BTC. If you care about freedom it is more private then money in a bank, you don't have the banks and government snooping on you. It is able to bi-pass currency controls, your account can't be frozen or garnished and you can decided if you want to pay tax or not. The world is waking up to the fractional reserve banking scam and more people want out every day.



If I am to buy bitcoins, I have no use for them other then to profit and then cash out.


Is gold or silver any different? How many purchases have you made with gold or silver so far? Do you buy your groceries or gasoline with PM's yet? No, you are waiting for SHTF or you will convert to cash.

There are merchants that accept BTC and they are growing everyday. Do some research, there is more stuff to purchase then you think, although much of the market is related to computing and services at this point because businesses that provide real products still have to convert to cash so BTC does not offer as much advantage but that will change as BTC grows and vendors are able to not only sell in BTC but also buy wholesale in BTC then you will see more things for sale.

Remember BTC is still young and the market still tiny for something that is global. Apple has a market cap of what 600-700 Billion? BTC is only 3 billion it has tons of room to grow.



Some of you guys are already winners, but it's still early yet to add up the score.
I've had friends in my past that ran pyramid schemes and this just looks like one to me.


This doesn't have the characteristics of a pyramid scheme it no more resembles a pyramid scheme then stocks or real estate, or PM's. When money flows in they go up, when money flows out they go down. BTC on a % basis has massive inflows of capital. That doesn't make it a scam.



Everytime I get interested and start researching bitcoin, the word scam comes up.


Well, there are scammers that are attracted to BTC and other crypto currencies. It is true capitalism, the wild west, there is no government regulation or interference. You could open an online gambling site in one day with no paperwork or government approval. If you believe in freedom the pros outweigh the cons and peoples reputations are most important when conducting business.

That article you posted means nothing to me by the way. The exchange was not listed and no names were given. The whole story could be made up dis-info for all we know. The article also forgot to list those who care about privacy and financial security as people interested in BTC. In a world where governments are really considering just taking your money out of your bank accounts can you blame people for trying to protect themselves?